Senate passes reversal of Obama-era retirement savings rule for cities, counties

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Sherri (C) and Curtis Walker (R) go over retirement options with Calpers Benefit Program Specialist Lisa Bacon (L) at the Calpers regional office in Sacramento, California, October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker (UNITED STATES BUSINESS) - RTXPWPQ Related words: seniors, retirement, Social Security, planner, older

The Senate has sent to President Donald Trump legislation to scrap a regulation encouraging cities and counties to set up retirement savings plans for some private-sector workers. The White House has said Trump will sign the resolution into law. Photo by Max Whittaker/Reuters

WASHINGTON — The Senate has sent to President Donald Trump legislation to scrap a regulation encouraging cities and counties to set up retirement savings plans for some private-sector workers.

The White House has said Trump will sign the resolution into law.

The measure passed 50-49 Thursday would reverse a 2016 rule under President Barack Obama’s administration that protected employers from requirements of the Employee Retirement Income Security Act, or ERISA. Republicans who control Congress say the policy forced some employers to enroll in “risky” government-run IRAs and reduced competition. Tennessee Sen. Bob Corker was the sole Republican to vote against the measure.

But Democrats and groups such as the AARP have said the rule had extended the option of creating retirement accounts to millions more Americans who can’t afford it otherwise.

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